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We are contemplating a Reg A offering. We closed a prior venture-backed round (one firm) about 2 years ago and our VC is not in a position to invest going forward. Interest from other VC had been good but has chilled given our existing VC's decision. As we have a plan to get them off the cap table, we are now exploring all options.

We like the concept of being able to solicit for investors under Reg A and the public company aspects are not that troubling for us (founder controls company).

We may end up doing a Reg D offering, but we cannot seem to locate a placement agent. Plus, we are not that kean on giving a small inverstor group control or blocking rights ... in light of where we have been.

I feel like I have been suckered into starting LLC's by law firms over and over again, and here is what happens every time: (1) it costs twice as much to get all of the papers done, (2) we start growing and need to layer in complex partnership concepts for the equivalent of employee options, (3) we have to convert to a C Corporation to take any real external financing, and (4) the conversion costs twice as much as you expect since you need to transform a convoluted partnership structure into an equity structure.

Using an LLC structure for a fast growing start-up seems like a trick play to generate ten or twenty times the legal fees. My next company is going to be a corporation, starting with an S corp for preferential tax treatment and migrating to a C corp when the business starts to scale. Any other thoughts on this strategy are welcomed in the feedback.